AstraZeneca and Moderna Therapeutics sign deal to develop RNA therapeutics

FTSE 100-listed biopharmaceutical business AstraZeneca has signed an exclusive agreement with Moderna Therapeutics to discover, develop and commercialise messenger RNA therapeutics for the treatment of cardiovascular, metabolic and renal diseases.

FTSE 100-listed biopharmaceutical business AstraZeneca has signed an exclusive agreement with Moderna Therapeutics to discover, develop and commercialise messenger RNA therapeutics for the treatment of cardiovascular, metabolic and renal diseases.

Under the terms of the agreement, AstraZeneca will make an upfront payment of $240m and it will have exclusive access to select any target of its choice in cardiometabolic diseases, as well as selected targets in oncology, over a period of up to five years for subsequent development of messenger RNA. In addition, Moderna is entitled to an additional $180m for the achievement of three technical milestones.

Through the agreement, AstraZeneca has the option to select up to 40 drug products for clinical development and Moderna will be entitled to development and commercial milestone payments as well as royalties on drug sales ranging from high single digits to low double digits for each product.

Pascal Soriot, Chief Executive Officer of AstraZeneca, said: "Today's agreement signals an exciting move for AstraZeneca and our focus on innovation. Together with Moderna, we are pushing the boundaries of science in the pioneering field of messenger RNA therapeutics."

Stephane Bancel, President and founding Chief Executive Officer of Moderna Therapeutics, said: "This multi-year strategic agreement with AstraZeneca is a very exciting and special moment for the Moderna team. The company's strategy is to develop, manufacture, and commercialize innovative drugs initially in rare diseases and oncology as well as to partner other therapeutic areas with best-in-class companies."

Messenger RNA therapeutics are a new treatment approach that enables the body to produce therapeutic protein in vivo, opening up new treatment options for a range of diseases.

AstraZeneca's share price was up 2.02% to 3,101.50p at 11:37 on Thursday.

MF

Recommended

Share tips of the week – 22 October
Share tips

Share tips of the week – 22 October

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
22 Oct 2021
Three dividend stocks from the dynamic Asia/Pacific region
Share tips

Three dividend stocks from the dynamic Asia/Pacific region

Professional investor Sat Duhra of the Henderson Far East Income investment trust highlights three of his favourite stocks.
18 Oct 2021
Share tips of the week – 15 October
Share tips

Share tips of the week – 15 October

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
15 Oct 2021
Trading: stash the family cash in this cheap wealth management firm
Trading

Trading: stash the family cash in this cheap wealth management firm

Wealth management is a growth market. Rathbone Brothers should be a prime beneficiary – and looks cheap. Matthew Partridge explains the best way to pl…
12 Oct 2021

Most Popular

How to invest as we move to a hydrogen economy
Energy

How to invest as we move to a hydrogen economy

The government has started to roll out its plans for switching us over from fossil fuels to hydrogen and renewable energy. Should investors buy in? St…
8 Oct 2021
Properties for sale for around £1m
Houses for sale

Properties for sale for around £1m

From a stone-built farmhouse in the Snowdonia National Park, to a Victorian terraced house close to London’s Regent’s Canal, eight of the best propert…
15 Oct 2021
How to invest in SMRs – the future of green energy
Energy

How to invest in SMRs – the future of green energy

The UK’s electricity supply needs to be more robust for days when the wind doesn’t blow. We need nuclear power, says Dominic Frisby. And the future of…
6 Oct 2021